FRIDAY IS NONFARM PAYROLLS DAY
A deluge of economic data will make its way through the financial markets on Friday, but none are more important than the US nonfarm payrolls release, which is scheduled to come at 12:30 GMT. The US jobs report is arguably the most anticipated release of the month, as it gives investors insights into the health of the world’s largest economy.
In terms of economic data, the first major release of the day comes at 06:45 GMT when the French government reports on international trade. Paris is forecast to post a trade deficit of €4.9 billion for March, down from €5.2 billion the month before.
IHS Markit will release euro-wide PMI data beginning at 07:15 GMT. PMI reports covering services and composite indices are scheduled for Spain, Italy, France, Germany and the 19-member Eurozone. The Eurozone composite PMI is forecast to come in at 55.2.
The European Commission’s statistical agency will report on retail sales at 09:00 GMT. Receipts at retail stores are forecast to rise 0.5% in March after a 0.1% uptick the month before. In annualized terms, this translates to growth of 1.9%.
Shifting gears to North America, the Labor Department is expected to show the creation of 192,000 nonfarm jobs in April. That would mark a significant improvement over the March growth rate of just 103,000. The jobless rate is forecast to fall to 4% from 4.1% the previous month.
Average hourly earnings, a proxy for inflation, likely rose 0.2% month-on-month and 2.7% annually.
Also on Friday, Federal Reserve officials William Dudley and John Williams will deliver speeches at 16:00 GMT and 19:00 GMT, respectively. Williams is a member of this year’s Federal Open Market Committee (FOMC), which recently voted to keep interest rates on hold.
Energy traders will also be keeping a close eye on the weekly rig counts courtesy of Baker Hughes Inc.
Europe’s common currency continues to hold below 1.2000 as traders turn their attention to nonfarm payrolls. EUR/USD was last seen trading around 1.1990. where it faces immediate support at 1.1937 and resistance at 1.2000.
Cable continues to hold at the lower end of its three-week range, with prices firmly capped below 1.3600. At the time of writing, GBP/USD was valued at 1.3583, where it had gained 0.1% from the previous close. The pair faces a psychological hurdle at 1.3700. On the downside, support is located around 1.3570.
The North American currency pair has established a choppy trading range over the past week, with prices bouncing around between 1.2820 and 1.2900. USD/CAD was last valued at 1.2840, where it was little changed. Nonfarm payrolls will likely provide the next major catalyst for this pair, which appears to have shrugged off rising oil prices.